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Atlantis Adventures to acquire Navatek I

Atlantis Submarines Hawaii LLP, doing business as Atlantis Adventures,
will add another vessel to its fleet of ocean tour vessels with the
acquisition of the high-tech SWATH tour boat Navatek I.

Atlantis Adventures and Pacific Marine announced an agreement in principle
for Atlantis to acquire Pacific Marine subsidiary Hawaiian Cruises,
Ltd., including the Navatek I and its associated operating permits.
The sale is expected to close in late April.

Not affected by the sale are Pacific Marine’s Maui tour boat operations,
which include the Navatek II and the Maui Nui Explorer vessels.

The purchase price and terms of the agreement were not disclosed, and
until the purchase becomes final, Pacific Marine will continue to own
and operate the vessel and offer its whale-watching and dinner cruises.

“The sale of Hawaiian Cruises is part of a company plan announced back
in September 1999 to downsize our tourism industry operations and focus
on more profitable business opportunities,” said Pacific Marine President
Steven Loui.

Darrell Metzger, president of Atlantis, said, “As the pioneer of submarine
tours in Hawaii and the leader in marketing visitor attractions in the
Islands, Atlantis is continually looking for opportunities to expand.
Acquisition of the Navatek I will enable us to begin offering dinner
cruises, a natural extension of our daytime tours.”

Now in its 12th year in Hawaii, Atlantis Adventures is the state’s
largest attractions operator, with 1999 sales of $46 million. In addition
to its deep-diving tourist submarine operations, the company provides
marketing and management services to Sea Life Park Hawaii, Waimea Valley
Adventure Park, the Battleship Missouri Memorial and other attractions.

Running out of room

As Hawaii container volumes increase, so does the need to expand container
yards

by Mele Pochereva

For the first time in a long time, Matson Navigation Company and CSX
Lines both reported a rise in Hawaii freight volume. Container volumes
for both companies were up 5 percent in 1999 over 1998.

CSX Lines would not disclose figures, but Matson carried 151,215 containers
last year, up from 143,431 in 1998. It was the first time the company’s
volume has risen since 1994, the year that rival CSX Lines (formerly
Sea-Land Services) was hit by a strike.

That’s the good news, and a hopeful sign of economic improvement for
the state.

The bad news is, container storage space at Sand Island is at capacity,
and at present, no additional container storage at Honolulu Harbor is
planned for 10 years or more. Currently, Matson operates on 110.5 acres
and CSX operates on 39 acres.

The Oahu Commercial Harbors 2020 Master Plan, completed at the end
of 1996, placed container storage at the top of the list of 20 most
important harbor facility needs. It identified the need for an additional
85 to 100 acres of container storage at Honolulu Harbor by the year
2020, based on a 2-1/2 percent annual growth rate for the state’s economy.

The plan earmarks Kapalama Military Reservation for container operations,
possibly for the re-location of CSX Lines from its Sand Island facilities.
But that project, which could provide the needed 85 to 100 acres,
is at least 10 years and $100 million away, according to Fred Nunes,
engineering program manager for the state Department of Transportation-Harbors
Division.

Before plans for Kapalama can be drawn up, two harbor studies, soon
to be underway by the Army Corps of Engineers, must be completed. The
first will study the technical, environmental and economic feasibility
of building a tunnel under Kalihi Channel to replace the Sand Island
bridges and open the channel for vessel traffic. A second study will
investigate the widening and reconfiguration of the Kalihi Channel turning
basin, a project that could impact the available space at Kapalama.

Nunes says once the studies are completed and it’s known whether or
not part of the Kapalama lands will be removed for channel widening,
DOT can proceed with planning the new container facilities. Financing
is a major issue, he says, and completion of the Kapalama container
facility is 10 years off at best.

But that’s not soon enough for Hawaii’s two land-squeezed shipping
companies.

Temporary solutions

CSX Lines’ Taylor says his company and Matson together need 5 to 10
acres immediately to accommodate the anticipated freight growth over
the next couple of years.

C. Bradley Mulholland, Matson president and CEO, announced earlier
this year that his company has set up a special project “Team 2000”
to look at ways to maximize capacity at Sand Island to meet current
space constraints. Under the leadership of Matson Terminals Vice President
Ken Tagawa, working with Matson Terminals President Gary North and the
consulting firm of Jordan Woodman Dobson (JWD), Mulholland said the
team will examine all aspects of the operations and “explore how to
best utilize the space available and ensure all container handling operations
are handled in the most efficient way possible.”

In discussing his company’s options, Clint Taylor, public affairs manager
for CSX, says stacking containers higher as is done at many other cargo
terminals, is not as easy a solution in Hawaii’s unique market where
customers use the container yards as temporary storage until they need
their goods. Congestion and high container stacks slow down the ability
to retrieve containers efficiently when customers want them, adding
higher labor costs to customers’ tabs. Furthermore, says Taylor, the
asphalt is not strong enough to support more than three-high stacks
of containers.

Taylor adds that Kalaeloa Barbers Point Harbor, built to handle container
cargo but now used primarily as a bulk cargo facility, is not a viable
option because most of their container customers are within three to
five miles of Honolulu Harbor. The increased cost of trucking containers
from Kalaeloa into Honolulu would mean higher costs to consumers.

For several years, CSX, Matson and DOT have been eyeing a 26-acre parcel
of land across from the Matson and CSX terminals for an interim container
yard until the Kapalama project comes on line.

The largely idle parcel, zoned for an industrial park, falls under
the jurisdiction of the state Department of Land and Natural Resources
Up to now the two state departments have been unable to reach an agreement
that would satisfy DLNR’s revenue requirements.

Back in 1997, it was proposed that DOT lease the land from DLNR and
share a percentage of its revenues. However, with the poor economy and
shipping volume down, DOT did not feel it could justify the estimated
$10.7 million it would cost to pave, light and fence the property for
use as container storage.

With the upturn in the economy, rising cargo volume and more revenues
for DOT, the agency is in a better financial position to address the
need for an interim container yard. But complicating matters is Governor
Ben Cayetano’s latest plan to build a municipal golf course on Sand
Island to replace the Ala Wai Golf Course so that the Ala Wai can be
converted into Honolulu’s “Central Park.” The new golf course would
need part of the existing, underutilized Sand Island Park and other
DLNR lands, including the 26-acre parcel sought for an interim container
yard.

Finite space

The underlying problem that state government and the maritime industry
must grapple with is how best to accommodate a growing maritime industry
on a finite amount of harbor-front land that is controlled by three
competing agencies: DOT-Harbors, DLNR and the Hawaii Community Development
Authority (HCDA), which has jurisdiction over Piers 1 and 2.

Senate Bill 2301, now before the state Legislature and supported by
Hawaii’s maritime industry, was introduced to define maritime land as
any land required for commercial and industrial activities that are
dependent on being adjacent to the water. The intent was to establish
a “water dependency” criterion for the state when major decisions are
being made involving lands near the water. In other words, making land
use decisions based on maritime needs.

“We believe that Hawaii, as an island state, needs to be even more
protective of our ‘maritime lands’ as our harbor frontage is finite
and once committed to other uses is forever lost to maritime uses,”
said Kraig Kennedy, chairman of the Maritime Committee of the Chamber
of Commerce of Hawaii, in testimony before the Senate Ways and Means
Committee.

However, as originally drafted, the bill sounded too much like a DOT
“land grab,” explains Taylor. An amended bill dated March 21 limits
the definition of “maritime lands” under DOT jurisdiction to exclude
DLNR’s Sand Island industrial lease area, small boat harbors and lands
under HCDA’s jurisdiction. But it does require Piers 1 and 2 to be limited
to maritime use.

While the bill doesn’t provide an immediate solution to the critical
need for temporary container yard space, the Administration by Executive
Order can transfer lands from the jurisdiction of one state agency to
another. With a definition of “maritime lands” in place and container
volume growing, the maritime industry hopes it can present a strong
case for incremental temporary acreage of at least 8 to 10 acres on
Sand Island, prior to the development of Kapalama Military Reservation.

Expedition of Discovery

Imagine being able to hike all the way from Lahaina to Lanai, stopping
to rest by a dozen or so deep basin lakes along the way. Of course,
there were no humans in Hawaii 21,000 years ago to utilize the vast
land bridge, but the features still exist – now submerged beneath hundreds
of feet of ocean.

Today, the Au Au Channel cloaks the land bridge, the sunken lakes and
a drowned coral reef, but the inspiring discovery of these ancient features
was made by a group of scientists who recently converged in Hawaii to
conduct an expedition of deep sea research, discovery and education.

The scientific team is part of the Sustainable Seas Expedition, a research
project that will explore all 12 U.S. marine sanctuaries during the
next five years, and pass the knowledge on to the rest of us. The project
is a unique collaboration between the National Oceanic and Atmospheric
Administration (NOAA) and the National Geographic Society, with support
from the Richard and Rhonda Goldman Fund and private industries.

The 10-day Hawaii mission took place in the Hawaiian Islands Humpback
Whale National Marine Sanctuary this past January and involved local
scientists, businesses and hundreds of Hawaii students.

For the Hawaii leg of the voyage, expedition leaders recruited several
noted Hawaii scientists and were also equipped with the latest sea-going
technology by American Deepwater Engineering Ltd., part of Honolulu–based
American Marine Services Group. The company’s two new state-of-the-art
deep water submersibles played a critical role in exploring and characterizing
sanctuary waters as deep as 1,300 feet. The one-person subs were brought
to Hawaii just four months earlier.

Local scientists Dr. Rick Grigg, a professor of oceanography at the
University of Hawaii, and Dr. Whitlow Au, chief scientist for the Marine
Mammal Research Program at the Hawaii Institute of Marine Biology, were
selected to join the project’s prestigious group of scientists, headed
by National Geographic Scientist-in-Residence Dr. Sylvia Earle.

Earle is a pioneer marine scientist who made her first scientific voyage
to Hawaii in 1977 to study the behavior of humpback whales. During the
1970s she also made her first deep dives in Hawaii sporting a bulky,
armored suit and a Rolex watch. Back then, Earle walked across the bottom
of the ocean — albeit clumsily — 1,200 feet below the surface.

Piloting the high-tech submersibles on her own made this expedition
a dream come true for Earle, who nurtures a strong affinity for the
humpback whales.
“Now I can follow where they go instead of watching wistfully while
their tails disappear into the darkness,” Earle said in a recent telephone
interview from her California office.

Frontiers of the deep

The submersibles, DeepWorker 8 and DeepWorker 9, can achieve speeds
of three knots and are each powered by 24 aircraft batteries, said Scott
Vuillemot, president of American Marine Services. The vehicles were
key in the brand-new discovery of 13 sunken lakes and drowned reefs
that virtually dot the perimeter of the submerged land bridge between
Lahaina, Maui, and the island of Lanai.

“The discovery of these lakes is a major finding. We have more work
to do, like taking core samples and analyzing them," said Dr. Rick
Grigg.
The mission also was a dream come true for Grigg who, like Earle and
other scientists, underwent two-weeks of rigorous training to “fly”
the submersibles into the ocean depths.

Grigg, Earle and other scientists made 27 high-tech forays into the
deep frontier to observe the growth of black coral populations and other
marine life off Maui and Lanai. The Au Au Channel, where the lakes now
lay submerged, is the primary black coral harvesting ground for a group
of diehard black coral divers based out of Lahaina Harbor. The ledges
surrounding the lakes make an ideal habitat for black coral, Grigg said.

Grigg, whose specialty is black coral and who has documented the biology
of Hawaii’s coral species for numerous scientific journals, was glad
to report that black coral divers have obeyed state law and have not
harvested any “trees” past the three-foot cut-back limit. He previously
discovered that black coral prefers to grow between 120 and 330 feet,
but the submersible explorations revealed the populations are healthier
in the middle ranges. Black coral colonies growing at 330 feet were
smaller and suffered more parasitic corals and sponges than colonies
at the shallower depths.

Grigg stressed the importance of protecting these drowned lake areas
because of the unique ecosystems that thrive there. He is currently
seeking legislation to preserve an area off Lahaina as a marine life
conservation district. He also is supporting a one-square-mile “no-take”
zone that would start three miles west of Lahaina, run parallel to shore
for three miles and extend a third of a mile wide. Grigg describes the
area as an important region that encompasses a submerged lake ecosystem
at about 240 feet. He says officials at the state Department of Land
and Natural Resources are supportive of the idea.

A slew of discoveries

The SSE Hawaii expedition is being heralded for its slew of biological
discoveries, and the team plans to return to Hawaii for further exploration
within the sanctuary. Earle found what she describes as a “vast forest”
of halimeda plants on the bottom of one of the drowned lakes. Halimeda
draw calcium carbonate out of the sea water and are vital for creating
sand and contributing to the structure of coral reefs, Earle said. They
typically grow in deeper water, but the plants Earle observed were growing
in 200 to 300 feet of water.

Another interesting biological discovery came from Kelly Benoit Bird,
a graduate student at the UH Institute of Marine Biology, and Dr. Whitlow
Au. They knew that large numbers of small fish, shrimp and squid migrate
toward the surface at night, and return to the depths during daylight.
But Au says sonar on this SSE voyage showed the fauna is densest around
midnight and was observed close to shore, a phenomenon previously unknown.

The finding is intriguing primarily because humpback whales, long thought
to be what researchers call “seasonally anorexic” while in Hawaiian
waters, could be sneaking a bite at night in the shallow waters they
prefer. While this behavior has not been observed, Bird hopes their
findings will spark an interest in studying humpbacks’ nocturnal habits.

Hawaii students also contributed to the research by heading out to
sea on three whale watch vessels donated by Trilogy Excursions, Club
Lanai and the Pacific Whale Foundation. They recorded whale sightings,
took part in water quality tests and “trolled” for plankton samples.

Another 200 or so students boarded Atlantis Adventures submarines in
Kona and Maui to monitor and count fish populations. The students who
were aboard the Maui-based Atlantis submarine made a rendezvous with
the DeepWorker submersibles, watching as Drs. Sylvia Earle and Steve
Gittings, National Marine Sanctuary research coordinator, waved at them
and maneuvered their submersibles around the larger submarine.

Later, 40 Hawaii students were joined by students from American Samoa
(also the site of an SSE expedition) aboard NOAA’s ship Kaimimoana where
the two groups shared information. And for the students who missed the
hands-on experience, expedition leaders recorded a one-hour broadcast
of KidScience, a Hawaii Department of Education distance learning program
that is broadcast to as many as a million students in 24 mainland states,
American Samoa and Hawaii classrooms.

Perhaps the most touching biological discovery came at the eleventh
hour. During the first dive in the last hour of the last day of the
expedition, Earle was alone in her DeepWorker submersible near the bottom
of the backside of Lanai, at 1,299 feet. Out of the corner of her eye
she noticed what she thought was a squid. It was actually a six-foot-long
ruby red octopus moving languidly through the water. The creature had
a silvery white underside with flecks of silver and gold. Its large
dark eyes regarded the scientist through the window of her submersible.
The scientist regarded the creature. It was a female clutching a brood
of eggs in the center of her eight tentacles. Octopus and scientist
ascended together 300 feet to the 1,000-foot level.

“We literally danced for an hour,” Earle recalled. “It’s a great question:
who was observing who?” But Earle is not one to get lost in reverie.
The mission of the SSE voyage, she reminds us, is to explore and set
up research projects, and to educate the public. Although Earle says
she has an underlying satisfaction in being able to go to those places
thus unexplored, her main work is for conservation.

“We have to do everything we can to protect the assets down there.
They’re so easy to lose, and so impossible to put back together again,”
Earle explains.

Jessica Ferracane is a freelance writer living on Maui.

DeepWorker takes on new depths

by Mele Pochereva

Stepping into one of American Deepwater Engineering’s new, one-person
submersibles is like climbing into the cockpit of a jet fighter, explains
Scott Vuillemot, president of parent company American Marine Services
Group. Once strapped into the seat, the pilot is surrounded by high-tech
computer equipment that runs the vehicle and its state-of-the-art communication,
navigation and data recording systems. Close the hatch, and the sporty
underwater flying machine is ready to go.

Weighing two tons each and powered by deep cell batteries, the company’s
DeepWorker 8 and DeepWorker 9 are two of only four such submersibles
in the world. The other two are owned by the manufacturer, Nuytco Research
Ltd. of Vancouver, Canada. They are the result of American Marine Services’
two-year effort to bring new technology to Hawaii that can be used to
develop ocean resources and provide services to federal and state agencies
for marine research and other projects.

The two craft were delivered in September of 1999 and underwent a couple
of months of testing and modifications before taking on their first
mission last December: a contract with the U.S. Navy to inspect and
repair submarine range systems in the Islands.

In January of this year, the two DeepWorkers were part of a 10-day,
27-dive Sustainable Seas Expedition to explore the depths of the Hawaiian
Islands Humpback Whale National Marine Sanctuary off the islands of
Maui and Lanai. Certified for an operational depth of 2,000 feet, the
expedition made the record books for the deepest dive conducted during
an SSE mission, diving to 1,299 feet off Lanai’s Palaoa Point.

The DeepWorkers are controlled by foot pedals, freeing the pilot’s
hands to log data on the on-board computer, operate the digital video
camera or maneuver the vehicle’s external manipulator arm and various
other tools. These “free-flying” vehicles perform much like a helicopter,
with the capability of hovering as well as vertical and horizontal movement,
Vuillemot says. And with a one-atmosphere cabin pressure, decompression
is unnecessary.

Throughout each dive – which can last up to six hours – the submersibles
maintain voice communication with American Marine’s mother ship, the
American Islander, and with each other. The American Islander also transmits
GPS navigational data acoustically to the DeepWorkers. At all times
the surface crew knows the exact locations of the submersibles, and
waypoints can be mapped so sites can be re-visited on future dives.

Taking no safety risks, the DeepWorkers are equipped with redundant
systems, including life support. And if at any time a DeepWorker pilot
becomes unable to operate the craft, the crew aboard the American Islander
can take control of the craft and bring it safely back to the surface.

Council finalizes measures to manage sharks

The management of shark harvesting and other fishery actions were adopted
by the Western Pacific Fishery Management Council at its meeting in
Honolulu in March. The council has jurisdiction over the exclusive economic
zone (generally 3 to 200 miles from shore) surrounding Hawaii, American
Samoa, Guam, the Northern Mariana Islands and U.S. Pacific Island remote
areas.

Among the actions taken at the four-day meeting were the following:

Shark Management

Agreed to amend the Pelagics Fishery Management Plan to (1) limit
the harvest of non-blue sharks by the Hawaii longline fishery to
one shark per trip and (2) set a precautionary harvest guideline
of 50,000 blue sharks annually for the fleet.

Encouraged the Coral Reef Ecosystem Plan Team to investigate the
appropriate management measures of coastal shark stocks to fishing
mortality.

Northwestern Hawaiian Island (NWHI) Fisheries

Defended the scientifically based fisheries management process
and continuation of the lobster and bottomfish fisheries. A lawsuit
against the National Marine Fisheries Service alleges these fisheries
are a threat to the Hawaiian monk seal and should be closed.

Recommended the year 2000 NWHI lobster harvest guideline not exceed
130,000; requested the lobster fishing industry enter into an agreement
with NMFS to fish according to a research protocol; requested a
research plan to study both spiny and slipper lobster at all NWHI
banks.

Fishery Rights of Indigenous People

Recommended that workshops on the cultural use of sea turtles by
indigenous people be duplicated in Hawaii, Guam and American Samoa.

Recommended that one council member seat be created for an indigenous
person to represent native fishing concerns in the Western Pacific
region.

Further information on these and other actions taken by the council
is available online at www.wpcouncil.org.

Regulatory News

CG finalizes vessel inspection rules

The Coast Guard has finalized its vessel inspection rules amending
regulations to introduce a 5-year Certificate of Inspection cycle to
harmonize inspections with most internationally required certificates.
The rule, which became effective on February 4, aligns inspection schedules
with international protocols; establishes an examination process that
gives the industry additional latitude in scheduling inspections; and
creates a parity between small passenger vessels and all other Coast
Guard-inspected vessels. The Coast Guard expects the rule to result
in reduction in the time and paperwork associated with vessel inspections
for certification.

Safety regs proposed for small passenger ships

The Coast Guard has proposed regulations that implement safety measures
for uninspected passenger vessels under the Passenger Vessel Safety
Act of 1993 (PVSA). This Act authorizes the Coast Guard to amend operating
and equipment guidelines for uninspected passenger vessels over 100
gross tons, carrying 12 or less passengers for hire. These regulations
will implement this new class of uninspected passenger vessel, provide
for the issuance of special permits to uninspected vessels, and develop
specific manning, structural fire protection, operating, and equipment
requirements for a limited fleet of PVSA exempted vessels.

Comments and related material pertaining to 46 CFR 26.03-8 of the rulemaking
must reach the Docket Management Facility on or before April 3, 2000.
Comments and materials pertaining to the remaining portion of this rulemaking
must reach the Docket Management Facility on or before May 31, 2000.
Comments sent to the Office of Management and Budget (OMB) on collection
of information must reach OMB on or before May 1, 2000.

New OPA-90 planning caps

On January 6, the Coast Guard announced a 25 percent increase in spill
response equipment planning caps for both tank vessels and marine transportation-related
(MTR) facilities. The new caps will become effective April 5, 2000.

According to a special edition of Vessel & Facility Compliance
News, published by Regulatory Compliance Partners (RCP) Inc., this action
will have far-reaching impacts on those whose spill response plans rely
on previous equipment caps to limit the amount of spill response equipment
for which they must have a “contract or other approved means.”

RCP predicts the cap increase for “Effective Daily Recovery Capacity”
(EDRC) will have a domino effect on other equipment requirements, including
increases in temporary storage and ancillary equipment such as trained
personnel, boats, spotting aircraft, sorbents, booms, and other resources.

Marine Casualties

The following information is provided by the USCG Marine Safety Office
Honolulu.

12/15/99 KAHOOLAWE, HAWAII.

The fishing vessel Princess K suffered a main engine fire while in waters
approximately 18 nautical miles south of Kahoolawe. The crew contained
the fire, however the engine was damaged beyond repair. A crewmember
was injured from smoke inhalation. USCG Cutter Washington arrived on
scene the next morning. The injured crewmember was flown by helicopter
to Honolulu. Cutter Washington towed the Princess K back to Honolulu.

1/25/00 HONOLULU HARBOR.
The tug Kamaehu collided with the tug Pono while assisting the arrival
of Queen Elizabeth II. Kamaehu, a Z-Drive tractor tug, lost hydraulic
steering pressure while maneuvering. Unable to stop or slow down,
the Kamaehu struck the Pono’s port side. The Pono sustained structural
damage. Further investigation revealed a failed pump coupling.
There were no injuries.

2/17/00 KIKIAOLA HARBOR, KAUAI.
The charter vessel Hokua was underway when the port engine suddenly
lost power. The engine was immediately secured and smoke was visible
from the vents. Fuel supply and hatches were secured and the vessel
proceeded back to port. Investigation revealed a faulty fuel line
leaked into the crankcase and the excess mixture was blown onto the
turbocharger. Two passengers were treated for minor smoke inhalation.

2/18/00 KEWALO BASIN, OAHU.The fishing vessel Shaman II grounded at the entrance of Kewalo
Basin. Initial attempts to pull the vessel from the reefs were
unsuccessful. The crew abandoned the vessel and was then picked
up by USCG Station RHI. Collection of fuel and bilges was conducted
the next morning. On Feb. 20, a salvage company pulled the vessel
off the reef.

National beach preservation conference

A National Beach Preservation Conference has been set for August 7-10
at the Royal Lahaina Resort in Kaanapali, Maui. This is American Shore
and Beach Preservation Association’s annual conference and a follow-up
conference to Hawaii Sea Grant’s 1998 Coastal Erosion Management Conference.

The program will feature many of the world’s experts on coastal erosion,
beach restoration and resource management. It will focus on techniques
for managing coastal erosion and beach loss that have successfully
preserved or restored beaches and other shoreline areas around the world.
There also will be sessions focusing on beach management issues for
Hawaii and other Pacific islands. An optional pre-conference field trip
will be offered on August 7.

Sponsors include the American Shore and Beach Preservation Assn., U.H.
Sea Grant College Program, Hawaii Department of Land and Natural Resources,
Maui County Coastal Lands Program, and others.

Salutes

Charles Helsley, director of the Hawaii Sea Grant College Program
since 1995, and Rose Pfund, associate director of the program, have
retired after many years of service to the University of Hawaii.

Helsley was with the University of Hawaii for 23 years. Prior to his
Sea Grant appointment, Helsley served as director of the Hawaii Institute
of Geophysics, a post he held for 18 years. He also held a post as professor
in the UH Department of Geology and Geophysics, and served as acting
dean at the UH School of Ocean and Earth Science and Technology, the
fourth largest oceanographic research institute in the country.

During his tenure as Sea Grant director, Helsley spearheaded Hawaii’s
first experiment in open-ocean aquaculture which tested a commercial
offshore sea cage stocked with 70,000 Pacific threadfin, or moi. The
experiment successfully demonstrated the feasibility of farming fish
in an open-ocean environment and has become a national model for offshore
cage culture.

Rose Pfund is retiring after almost 34 years of service to the
University of Hawaii. She has dedicated her professional career to higher
education, primarily in curriculum development and administration.

Pfund also spearheaded three noteworthy innovations in lower education:
1) the Annual High School Student Symposium on Marine Affairs, initiated
in 1976 and now being coordinated by the Hawaiian Academy of Sciences;
2) Hoi Ana Ike Kai, an educational program initiated in 1978 at Waianae
High School and Maili Elementary School; and 3) Makahiki Kai, a five-year
traveling marine education exhibit and program.

Pfund also developed and initiated two new programs: 1) the Sea Grant
New Researcher Grants which discovers new faculty research talent, and
2) the Sea Grant Undergraduate Summer Research Program, with grants
from DLNR and Aquasearch, Inc.

In the area of research, Pfund coordinated and directed a team of researchers
in the in the first study on the environmental impacts and policy aspects
of oil spills in Oil Spills at Sea: Potential Impacts on Hawaii.

Replacing Helsley as director of the Sea Grant Program is E. Gordon
Grau, professor of zoology and former interim director of the Hawaii
Institute of Marine Biology.

Grau’s professional affiliations include membership in the American
Society of Zoologists, the American Association for the Advancement
of Science, the Endocrine Society, the Asia and Oceania Society for
Comparative Endocrinology and the World Aquaculture Association.

Grau was the recipient of the Regent’s Medal for Excellence in Research
at the University of Hawaii in 1988.

News Briefs

New ships hurt American Classic earnings

Costs related to the building of two new, luxury cruise ships for its
Hawaii service and fleet expansion of its Delta Queen Steamboat operations
were primary contributors to American Classic Voyages’ fourth-quarter
loss of $33,000 last year. The company reported a loss of $1.8
million for all of 1999, compared to a 1998 profit of $200,000.

Company revenues were up for the year, however, at $208.7 million compared
with $192.2 million in 1998.

Bookings for its American Hawaii Cruises are strong for the first nine
months of 2000, with the 1,021-passenger SS Independence 96 percent
booked. In December, the company will put a second inter-island cruise
ship, the 1,214-passenger MS Patriot, into service under its new United
States Lines brand.

Meanwhile, the company is building two new 1,900-passenger ships as
part of its United States Lines fleet. They are scheduled to go into
Hawaii service in 2003 and 2004.

Harbor contracts awarded

The state Department of Transportation awarded an $85,000 contract
to Dillingham Construction Pacific, Ltd. for pile repairs at Nawiliwili
Harbor’s Pier 2 on Kauai. A $4.7 million contract was awarded to Hawaiian
Dredging Construction Co. for improvements at Kalaeloa Barbers Point
Harbor on Oahu.

Work on the Nawiliwili repairs was scheduled to begin in March.

Improvements at Kalaeloa Barbers Point include the extension of Pier
5 by 305 feet, grading and paving the new storage yard, utility improvements,
and the installation of a new breasting dolphin with mooring bitt. Work
is scheduled to begin in April.

Ko Olina Marina now open

The state’s first resort marina was dedicated on March 16 at Ko Olina
Resort in West Oahu. The 43-acre, 270-slip Ko Olina Marina is now open
to recreational boaters and commercial boat operators.

Floating concrete docks accommodate vessels up to 150 feet in length.
Other amenities include a marina convenience store with a full service
fuel dock for gasoline, diesel and pump-out services; a launch ramp;
30 trailer parking stalls; access to electricity, water, phone, cable
television hook-up; laundry and restroom facilities; and barbecue and
picnic areas.

Slip rental fees begin at $9 per foot per month; guest slips start
at $1.50 per foot per day. For further information, call the marina
office at 808-679-1050.

Oceanic Institute receives Castle grant

The Harold K.L. Castle Foundation has awarded a $75,000 capital grant
to the Oceanic Institute for the expansion of the Center for Applied
Aquaculture and Marine Biotechnology. The expansion will include 11
new research, training and education facilities on the islands of Oahu,
Hawaii and Molokai.

The grant is the largest single private grant awarded to the institute
and serves as the cornerstone of OI’s $6 million capital campaign. The
campaign has raised $3.5 million to date.

Lady Bella sued

An abandoned cargo ship that was towed to Kalaeloa Barbers Point Harbor
in January is the subject of a lawsuit filed by the salvage company
that found the vessel adrift off Midway Island last year.

According to industry sources, Sunbelt Surplus Valve Inc. of Texas
filed a lawsuit against the 486-foot Lady Bella in U.S. District Court
on February 28, seeking $4 million for the salvage job. Sunbelt wants
to impose a lien on the vessel and its freight which includes vehicles,
engines, machinery, paraffin, steel pipe and other cargo.

The Lady Bella caught fire north of Midway last August and was abandoned
by the crew who were picked up quickly by a passing vessel. It drifted
for four months before Sunbelt chartered a tug to bring it to Hawaii.

Soundings: HOST seeks industry-wide support

by Terry O’Halloran

Are Hawaii’s waterways safer today than they were last year?
The answer is a resounding “Yes!” Where can
you find a decision matrix that spells out what prevention and safety
measures need to be in place while a vessel conducts maintenance and
repair at anchor? You will find it in SOP 1-97. Where can
you find minimum standards for conducting safe scuba diving operations
from vessels in Hawaiian waters? That can be found in SOP 5-97.
Are there safety procedures for multiple cruise ship visits at Lahaina
Harbor, Maui? Yes, in SOP 7-98. These are just a few of
the Safe Operating Practices (SOP) that have been developed by members
of the Hawaii Operational Safety Team (HOST) to make Hawaii’s waterways
safer.

HOST is a statewide organization that proactively finds solutions to
maritime safety and environmental issues in Hawaii. We are at
a crossroad and seek support from the maritime industry that we represent.
Before you get the pitch, however, let me provide a review of HOST.

HOST is a private non-profit organization and the ONLY maritime industry
group that focuses on the prevention of accidents and pollution-free
stewardship of the marine environment. Our mission at HOST is to provide
an open forum for industry, government and public to identify and propose
solutions to maritime issues. We focus on the root causes and
the human element to proactively prevent future casualties.

It does not matter whether you are a sailor, cruise ship captain, government
official, or fisherman — all ocean users with an interest in maritime
safety are equal and welcome to participate in HOST subcommittees.
It is this community-based input that is the heart and strength of HOST
and ensures that the solutions of ocean-related issues really work.
This philosophy is captured in our statement of core values: HOST
participants openly share expertise, are respectful of others, are solution-oriented
and have the courage to succeed.

The real work is done through 14 subcommittees that are organized by
subject — from anchorages to ocean racing — or by geographical location.

An Advisory Board provides strategic direction, establishes general
meeting agendas, disseminates information, and provides general oversight
as to the issues pending before HOST. Board members represent
the broad and diverse sectors of our industry including shipping, ocean
tourism, fishing, yacht clubs, government, labor and the public at large.

The chairpersons of the Kauai, Maui, Big Island, and Oahu subcommittees
are also Advisory Board members, bringing a statewide perspective to
the board and enhancing coordination.

Identifying and finding solutions to maritime safety and environmental
concerns is the primary purpose of HOST. Many issues are relatively
simple and solutions are found by educating other subcommittee participants
and reaching agreement. There are times, however, when issues
are complex, involve a large number of stakeholders or have statewide
implication. Solutions for these types of issues may require a
number of subcommittee meetings and the development of a Safe Operating
Practice (SOP).

There is a tremendous difference between a government regulation and
an industry Safe Operating Practice. HOST SOPs are developed and
amended by the maritime industry through consensus and are distributed
to all appropriate government agencies and the maritime industry.
Regulations are developed by government agencies, may not have industry
buy-in and are very difficult to amend once in place. The ability
of the maritime industry to self-regulate can be very effective if it
is applied conscientiously and objectively.

Now for the pitch. HOST was initially started with invaluable
assistance of the Coast Guard and Captain Frank Whipple. The Coast
Guard has, to date, provided a significant level of administrative support
to our all-volunteer organization. While we are grateful to the
Coast Guard and they remain committed to HOST, it is time for us to
become administratively self-sufficient and move forward as a truly
independent industry organization.

Accomplishing this goal is a significant challenge and we must take
small steps if we hope to be successful. The real work of HOST
will continue to be done by interested ocean users who volunteer their
time and expertise. However, there are administrative functions needed
for the coordination and communication of this worthwhile effort – and
this costs money.

We must not create a large bureaucracy that feeds on an ever-increasing
level of funding, for this will not serve the purpose of HOST nor benefit
our industry. Therefore, the Advisory Board has developed a minimal
budget ($20,000 annually) to support a part-time administrative position
and share an office.

In order to fund this minimal budget we have established different
levels of sponsorship that will allow maritime businesses and individuals
to contribute to the future of HOST and maritime safety. Sponsorship
is not to be confused with membership, for any interested ocean user
willing to participate is automatically a HOST member with no fees attached.

Sponsorship levels range between a $5,000 Lifetime Sponsor to a $50
Contributing Member. You can get more information about HOST and how
to become a sponsorship by visiting the HOST webpage at http://www.h.o.s.t.freeservers.com.

The future of HOST is dependent upon the maritime industry stepping
forward with support. We are already proving that we have the
ability to stand together and conscientiously apply our expertise toward
making our waterways safer. If we improve safety in Hawaiian waters,
lives and equipment will be saved — this is indeed a worthwhile goal
and worthy of support.